Balmora is a huge down with a river running through it. In essence there are three areas: the area east of the river that you first get to from walking or the silt strider, the area west of the river with the CornerClub with the thieves, and the area up the hill with the fancy buildings.

Wander around first without talking, to get all of the location set on your map. That'll make it easier to find people later on. Also, choose one shopkeeper and stick with him or her. That way your rating will go up greatly with that one person.

The two right by the entrance are:

clagius clanler - outfitter to left on way in. He has the book of dawn and dusk on his table. no bonus for reading it.